What is the ruling on borrowing from the cooperative housing association (al-widadia) if it deducts 15 dinars monthly from subscribers and offers housing loans with a 3% interest rate, while returning the subscription amount and surplus to the subscriber upon retirement?

Taking interest on loans, as institutions do, is the very essence of forbidden usury (riba). Its prohibition encompasses individuals, states, and organizations. Therefore, it is impermissible to borrow with usurious interest under any name. It is permissible to charge administrative fees, provided that they are a fixed charge and not a percentage that varies according to the amount of the debt, and that they are commensurate with the administrative needs. There is also no objection to establishing a cooperative, solidarity fund that benefits its participants, provided that it adheres to Sharia (definition) guidelines, is based on principles that keep it away from gambling (maysir (definition)), and clearly embodies the spirit of cooperation and mutual support.